Finra Series 6 Questions and Answers
| Latest Version | 2025/2026 | Correct &
Verified
What license allows an individual to sell mutual funds and variable annuities?
✔✔Series 6 license
Which regulator administers the Series 6 examination?
✔✔FINRA
What type of investment company issues mutual funds?
✔✔Open-end investment company
What document must be provided to investors before or at the time of purchase of a mutual
fund?
✔✔Prospectus
What fee compensates a broker-dealer for selling mutual fund shares?
✔✔Sales charge
What is another name for a front-end sales charge?
✔✔Load
1
,Which mutual fund share class typically has no front-end load but higher annual expenses?
✔✔Class B shares
Which mutual fund share class usually offers lower expense ratios for large investments?
✔✔Class A shares
What ongoing fee is used to pay for marketing and distribution of mutual funds?
✔✔12b-1 fee
What term describes reinvesting dividends to buy additional fund shares?
✔✔Automatic reinvestment
What is the net asset value (NAV)?
✔✔Market value of assets minus liabilities divided by shares outstanding
When is a mutual fund’s NAV calculated?
✔✔At the close of each trading day
What pricing method requires orders to be executed at the next calculated NAV?
✔✔Forward pricing
What type of mutual fund invests primarily in stocks?
2
,✔✔Equity fund
What type of fund focuses on debt securities?
✔✔Bond fund
What mutual fund objective seeks both income and capital appreciation?
✔✔Balanced fund
What fund invests in short-term, high-quality debt instruments?
✔✔Money market fund
What risk refers to the possibility that interest rate changes affect bond prices?
✔✔Interest rate risk
What risk is associated with an issuer’s inability to meet debt obligations?
✔✔Credit risk
What fund objective emphasizes current income with lower risk?
✔✔Income objective
What investment risk results from inflation reducing purchasing power?
✔✔Inflation risk
3
, What term describes diversification across many securities?
✔✔Portfolio diversification
What type of fund tracks a market index?
✔✔Index fund
What term describes gains from selling a security at a higher price than purchase?
✔✔Capital gain
What document details a mutual fund’s investment objectives and risks?
✔✔Prospectus
What mutual fund transaction occurs when an investor sells shares back to the fund?
✔✔Redemption
What rule limits excessive trading in mutual funds?
✔✔Frequent trading policy
What is the breakpoint discount?
✔✔Reduced sales charge for larger investments
4
| Latest Version | 2025/2026 | Correct &
Verified
What license allows an individual to sell mutual funds and variable annuities?
✔✔Series 6 license
Which regulator administers the Series 6 examination?
✔✔FINRA
What type of investment company issues mutual funds?
✔✔Open-end investment company
What document must be provided to investors before or at the time of purchase of a mutual
fund?
✔✔Prospectus
What fee compensates a broker-dealer for selling mutual fund shares?
✔✔Sales charge
What is another name for a front-end sales charge?
✔✔Load
1
,Which mutual fund share class typically has no front-end load but higher annual expenses?
✔✔Class B shares
Which mutual fund share class usually offers lower expense ratios for large investments?
✔✔Class A shares
What ongoing fee is used to pay for marketing and distribution of mutual funds?
✔✔12b-1 fee
What term describes reinvesting dividends to buy additional fund shares?
✔✔Automatic reinvestment
What is the net asset value (NAV)?
✔✔Market value of assets minus liabilities divided by shares outstanding
When is a mutual fund’s NAV calculated?
✔✔At the close of each trading day
What pricing method requires orders to be executed at the next calculated NAV?
✔✔Forward pricing
What type of mutual fund invests primarily in stocks?
2
,✔✔Equity fund
What type of fund focuses on debt securities?
✔✔Bond fund
What mutual fund objective seeks both income and capital appreciation?
✔✔Balanced fund
What fund invests in short-term, high-quality debt instruments?
✔✔Money market fund
What risk refers to the possibility that interest rate changes affect bond prices?
✔✔Interest rate risk
What risk is associated with an issuer’s inability to meet debt obligations?
✔✔Credit risk
What fund objective emphasizes current income with lower risk?
✔✔Income objective
What investment risk results from inflation reducing purchasing power?
✔✔Inflation risk
3
, What term describes diversification across many securities?
✔✔Portfolio diversification
What type of fund tracks a market index?
✔✔Index fund
What term describes gains from selling a security at a higher price than purchase?
✔✔Capital gain
What document details a mutual fund’s investment objectives and risks?
✔✔Prospectus
What mutual fund transaction occurs when an investor sells shares back to the fund?
✔✔Redemption
What rule limits excessive trading in mutual funds?
✔✔Frequent trading policy
What is the breakpoint discount?
✔✔Reduced sales charge for larger investments
4
